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hmmm, it looks like what they may be doing is trying to creat code references so that when the PS2 game code gets decompiled, it can then be recompiled to PS3 specific code.

A good example is transparency, PS2 couldn't do it via hardware but the huge bandwidth of the GS allowed developers to achieve it via software, so this emulator would recompile it so that the code for transparency is now done by the RSX hardware and thus alleviating the need for huge bandwidth requirements of the old technique.

In any case, this is something Sony wants and even if it doesn't make it this generation it'll be here for next generation seeing as how powerful nostalgia is and the willingness of consumers to re-buy games of yesteryear.